Equity Resources plc

September 13, 2012 02:01 ET

Audited Results for the year ended 31 May 2012

                                                                                    13 September 2012
                                        Equity Resources plc
                                ("Equity Resources" or the "Company")
                           Audited Results for the year ended 31 May 2012

Chairman's statement

I  am  pleased to present the Company's annual statement to Shareholders for the twelve month  period
ended 31 May 2012.


The investment climate, especially amongst small cap mineral exploration stocks has been particularly
harsh  in  recent  months with values little more than one third of those announced  as  recently  as
February 2012.  The current uncertainties in world markets overshadow us.


During  the year GBP40,000 was raised by the exercise of warrants at 1 penny per share by  two  major
shareholders, Guild Acquisitions plc and Starvest plc. The short term loan obtained in  2010  remains

Investment review

The Company's funds continue to be invested entirely in Regency Mines plc and Red Rock Resources plc,
two mineral exploration businesses, both of which are traded on the Alternative Investment Market  of
the  London  Stock Exchange.  As I am a non-executive director of these two companies, the investment
decisions were made by my colleagues, Simon McNeill-Ritchie and Arif Virani.

In  both  cases,  in spite of significant progress during the year with their various  projects,  the
share  prices  have  been severely challenged, a fact not uncommon amongst such  mineral  exploration
ventures.   The net asset value has fallen from GBP1,069,800 at 31 May 2011 to GBP230,250 at  31  May
2012 and further to GBP153,000 at 11 September 2012.

Red  Rock  Resources plc - www.rrrplc.com - has become a gold explorer in Kenya and has  gold  mining
interests  in Columbia.  In Kenya, exploration activities continue successfully, whereas in  Columbia
Red  Rock  has received an offer to acquire its 51% interest in a mine which is slowly being  brought
into  production.    In addition to an interest in Ascot Mining plc (PLUS: ASMP www.ascotmining.com),
Red  Rock is in its second season working with NAMA Greenland exploring for iron ore in north western
Greenland.   It  continues  to  hold  a  valuable  stake  in  Jupiter  Mines  Limited  (ASX   quoted,
www.jupitermines.com)    a    major   steel   feed   venture   lead   by   Pallinghurst    Resources,
www.pallinghurst.com, and in Resource Star Limited (ASX quoted, www.resourcestar.com.au)

The Board remain confident that the shareprice will recover in due course.

Regency Mines plc - www.regency-mines.com - has mineral exploration interests in Australia and  Papua
New  Guinea with a 16% equity interest in Red Rock Resources plc and an 11% equity interest in Oracle
Coalfields  plc (AIM: ORCP, www.oraclecoalfields.com).  The principle metal target in PNG  is  nickel
where  it  has  a joint venture with Direct Nickel PTY Limited and where it has recently  declared  a
world  class  nickel  resource. Meanwhile, it continues to work with Direct Nickel  with  a  view  to
exploiting  the  latter's innovative technology for extracting nickel from ore.  Separately,  it  has
recently announced an opportunity to explore for minerals in Sudan.

In spite of the currently depressed market prices, the portfolio remains in profit.

Results for the year

The  net loss for the year, consisting entirely of administrative costs, amounts to GBP36,950  (2011:
profit of GBP34,702) that is, 0.07 pence loss per share (2011: 0.07 pence profit per share).

Future plans

It  remains  the  intention of the Board to take all reasonable steps to enhance  Shareholder  value,
taking  profits as may be considered advisable to finally clear the Company's liabilities, to finance
necessary administrative overheads and to provide funds for further investments.
It  is  the Board's belief that the current prices at which the shares of the investee companies  are
traded  are substantially undervalued, but the Board is considering other options given the value  of
the PLUS Markets quote we enjoy.

Shareholder information

So as to conserve resources, the Company does not maintain a website.  However, announcements made to
PLUS  Markets are available on www.plusmarketsgroup.com.  Furthermore, the investee company  websites
as previously noted are a valuable source of information.

Annual general meeting

We  plan to hold our annual general meeting during October 2012 when we look forward to meeting those
Shareholders able to attend and will provide a portfolio update.  A formal notice is enclosed.

John Watkins
12 September 2012

Extracts from the Directors' report

Principal activities and business review

The principal activity of the Company is to invest in small companies including pre IPO opportunities
and to deal in and take profits from these investments as may be deemed appropriate.  As described in
the  Chairman's  statement,  the Company now holds investments in two mineral  exploration  companies
which have proved to be profitable and which the Directors believe show potential for future growth.
The  Company's  key performance indicators, developments during the period and future intentions  are
given in the Chairman's statement.

Key risks and uncertainties

This  business  carries with it a high level of risk and uncertainty, although  the  rewards  can  be
outstanding.   Often there is a lack of liquidity in the Company's investments, which are  quoted  on
AIM,  such  that  the  Company may have difficulty in realising the full  value  in  a  forced  sale.
Accordingly,  an  investment is only made after thorough research into both the  management  and  the
business of the investment target, both of which are closely monitored thereafter.  Furthermore,  the
Company  limits the amount of each investment, both as to the absolute amount and percentage  of  the
investee company.  Details of other financial risks and their management are given in Note 19 to  the
financial statements.

Results and dividends

The  Company's results are set out in the profit and loss account.  The financial statements for  the
year ended 31 May 2012 were audited by Ashings Limited.

The directors do not recommend the payment of a dividend for the year.

Profit and loss account
for the year ended 31 May 2012

                                                                     Year ended         Year ended
                                                                    31 May 2012        31 May 2011
                                                                            GBP                GBP
Operating income                                                              -             83,240
Direct costs                                                                  -              4,917
Gross profit                                                                  -             78,423
Administrative expenses                                                (35,750)           (41,216)
Operating (loss)/profit                                                (35,750)             37,107
Interest receivable                                                           -                  -
Other interest payable                                                    1,200              2,405
(Loss)/profit on ordinary activities before                            (36,950)             34,702
Tax on profit on ordinary activities                                          -                  -
Loss/profit on ordinary activities after taxation                      (36,950)             34,702
Loss/profit per share - basic                                      (0.07) pence         0.07 pence

There are no recognised gains and losses in either period other than the profit/loss for the period.

All operations are continuing.

Balance sheet
As at 31 May 2012

                                                 31 May 2012                    31 May 2011
                                              GBP            GBP            GBP            GBP
Current assets                                                                                     
Debtors                                          4,749                         4,670
Investments                                     96,500                        96,500
Cash at bank                                    18,165                        16,322
                                               119,414                       117,492               
Creditors - amounts due within                (35,536)                      (36,664)               
one year
Net current assets                                             83,878                        80,828
Total assets less current                                      83,878                        80,828
Share capital and reserves                                                                         
Called-up share capital                        483,750                       479,750
Share premium account                          507,250                       471,150
Profit and loss account                      (910,503)                     (873,553)               
Share based payments reserve                     3,381                         3,381
                                                               83,878                        80,828
Equity shareholders' funds                                     83,878                        80,828

Cash flow statement
for the year ended 31 May 2012

                                                             Year ended               Year ended               
                                                            31 May 2012              31 May 2011
                                                                    GBP                      GBP
Net cash from operating activities                             (36,957)                   74,589               
Returns on investment and servicing                                                                            
of finance:
Interest payable                                                (1,200)                  (2,405)               
Cash (outflow)/inflow before                                   (38,157)                   72,184               
Issue of new equity                                              40,000                        -               
Loans received, less repayments                                       -                 (78,076)               
Increase/(decrease) in cash in the                                1,843                  (5,892)               

        Earnings per share                                               Year ended     Year ended
                                                                             31 May         31 May
                                                                               2012           2011
                                                                                GBP            GBP
        The  basic  earnings per share is derived by  dividing  the                               
        profit  for  the year attributable to ordinary shareholders
        by the weighted average number of shares in issue.
        (Loss)/profit for the year                                         (36,950)         34,702
        Weighted average number of Ordinary shares of GBP0.001 in        50,524,180     47,975,000
        issue                                                          (0.07) pence     0.07 pence
        (Loss) earnings per share - basic
        Earnings per share fully diluted for all options and           (0.05) pence     0.05 pence
The  balance sheet at 31 May 2012, the profit and loss account, and the cash flow statement  for  the
year then ended have been extracted from the Company's statutory financial statements upon which  the
auditor's opinion is unqualified.

The financial statements were approved by the Board of Directors on 12 September 2012.

The auditors, Ashings Limited, signed their report without qualification on 12 September 2012.

Copies  of  the report and financial statements will be posted to Shareholders and will be  available
for a period of one month from the Chairman's office:  67 Park Road, Woking, Surrey, GU22 7DH
email:  email@equityresources.co.uk and also on the PLUS Stock Exchange website www.plus-sx.com.

The Directors of Equity Resources plc are responsible for the contents of this announcement.

Equity Resources plc                     
John Watkins, Chairman                   Tel: 01483 771992
                                         Email:  john@equityresources.co.uk
St Helens Capital Partners LLP           
Corporate Adviser                        Tel:  020 7369 6959
Duncan Vasey                             Email:  duncanvasey@sthcp.com

Contact Information

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